July 15.
Deals are deals, and many film companies were brought down to earth when they saw the indiscriminate way Lux Animation entered a new investnt period. They paid off their millions in debts and took out another $300 million loan at an annual interest rate of 1.5%. It was outrageous, but Raimon promised to strengthen relations, and after many negotiations and help from Raimon’s father, the deal was sealed abruptly. With over $700 million in their accounts, they addressed all the company’s minor leaks and focused on their main objectives.
The purchase of the Caralco Pictures library and the creation and proposal of a genuine series of independent films under Lux Films were prioritized. Lux Films would no longer be Billy's playground but would start producing true independent films regularly, with a minimum budget of $15 million per film and aiming for two to three films a year. The bright eyes of Jim Gianopulos, who was in charge, were a source of pride. It was a bet he decided to make and fulfilled.
-I don't think I can handle everything we have on our plate, - comnted Jim Gianopulos during the eting. The company was growing like a sleeping giant, and the latest purchase posed a real problem. Billy was unstoppable in his desire to acquire copyright libraries, channels, and pay channels; he wanted it all. Jim could only sigh internally in a way that seed almost unreal.
Amid the silence of the board, Billy interrupted.
-It doesn't matter; for now, these are just projections. Caralco is a hassle, but it’s better to wait before buying it. anwhile, we’ll hire soone to handle television while you manage the films. Lux Animation will undergo a new corporate restructuring, - said Billy.
This was already planned: two houses, Lux Group as the head, the conglorate’s parent company, while Lux Animation, a subsidiary, would further subdivide into Lux Productions, Comics and Toys, Lux Productions Animation, Lux Comics, and Distribution Comics.
On one side, there’s ID Software, Rapid Food, and Autodesk. anwhile, Apple’s assets and Hotel Paradise are under Billy’s na.
-So, how will we proceed? - asked Anne, doubtful.
-We’ll buy Discovery Channel and either Rhythm & Hues Studios or Digital Domain. We need one of these companies now that we’re venturing into low-budget and science-fiction films, - Billy comnted, closing the discussion. Jim sighed deeply in surprise; buying Discovery wasn’t in the plans. Was it a whim, or did soone leak information, and was there a closer plan with Steve Parks? So mbers shifted uncomfortably, feeling the last two hours were wasted.
-We’re done, - said Anne, informing the group, after eight hours of eting, with the last two seemingly wasted.
Steve Parks received Billy’s seal of approval for the Discovery purchase. They needed support from more than one person, maybe a company, and the sale of Hotmail didn’t et the interest of fostering closer ties. After all, Technology Venture wasn’t a very popular domain. However, the pure and hard cash offer, along with support and rectification in Apple, was all Billy needed. Microsoft gave him 8% of their shares along with $518 million—an unmatched offer in ga creation and imdiate investnt in the latest generation console.
It was simply the best offer.
Steve Parks waited, while Anne stayed nearby, wanting to hear the plans.
-I’ll buy a Panini from Marvel. They’re desperate for funds, and Ronald Perelman is in a tight spot. The company will certainly sell Panini. anwhile, we’ll make an offer for Discovery and continue our dealings as a docuntary company. They’ll surely want to work with new funds, - Billy smiled, realizing that Ronald’s need was Billy’s gain. If he could buy Panini for $60 million, the problem would be smaller.
-Why do you want to buy Panini? - asked Steve Parks.
-They have many companies in Italy, xico, Arica, and England, factories, and more importantly, an agreent with FIFA. If we secure sponsorship with Coca-Cola and have them double the advertising, expanding our animated services to Europe will be easier. We’ll stabilize comic sales with their factories, - Billy explained.
-I’ll do my best with Discovery, but what about all the back-and-forth with Caralco and Artisan? -
We're just testing the waters; we’ll buy their libraries later. Keep inquiring with interested parties about their film library and various series, - Billy replied.
Steve Parks closed his eyes, leaning back in his chair. He needed to act interested in Caralco but not too eager to buy it, while Billy handled things under the radar, acquiring Discovery and Panini with mutual collaboration.
-I can do that. I can see how desperate Caralco is right now. Buying their library at a minimal price won’t be a problem. Should we do sothing? - Steve Parks asked.
-No more than forty million dollars. If it exceeds that cost limit, we shouldn’t invest in pipe dreams. Their problems and deals are significant only if we don’t overpay, - Billy comnted. Carrasco had been the scapegoat for Tristar Pictures, which is Columbia Pictures (Sony), and Artisan Entertainnt. They had star relationships with all the Hollywood companies, each sharing the benefits. These contracts weren’t favorable for Caralco, which used to produce multi-million-dollar movies. One of the main interests is their library.
-Mmmm, there are several interested parties. We could face a lost battle. I’ll make so advances, - Steve Parks comnted, starting to assess what he needed for his negotiation.
Anne nodded as Steve Parks left, following him out the door. Billy stretched, feeling exhausted, and rembered he had to catch a flight to Los Angeles first thing in the morning.
***
Avi Arad closely monitored Ronald Perelman’s actions. From one side, he could see the company starting to falter. The initiative for TV series, even when they approached Saban, couldn’t compete with the required assets to secure a full agreent with an animation company. They considered creating their station, sothing bigger, but complexities arose. Finding skilled animators was possible, but progress was minimal, and the stories weren’t hitting the mark. Ronald remained unfazed by the company’s condition.
Things were unraveling, and at each eting, Stan Lee’s deadpan expression revealed a lot about the situation and the company’s lack of confidence. When planning the rger, the fact that action figures were now out of their control and with distrust, he constantly called Karl Icahn, an investor, to buy shares. Both aid to control Marvel, planning to create big movies like X-n, Spider-Man, and Iron Man. Ronald Perelman’s secrets were well known to Avi, who invested all his money and built trust with constant financial injections, gaining shares.
-The baseball players will fight, and I find a complete lack of action. The stamp company is not profitable at all, - comnted Isaac Perlmutter.
-There’s nothing more to be done. The sales of toys with the TV series have generated great profits. But we’ve expanded our service to many areas: clothing, balls, bicycles, and any toy in our favor. Therefore, our inco should increase when our Fantastic Four and Hulk series premiere. We’ll receive good earnings, as Fox and Cartoon Network have given us a good deal, above Lux Animation, - said Joe Quesada.
-Alright, alright, we might have other benefits in our favor and perhaps get rid of these companies that burden us, - Ronald Perelman comnted cryptically, adjusting to one side.
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